The influence of digital disclosure language adoption on decrease financial information asymmetry and increase its quality

Abstract

Purpose

The main purpose of this study is to determine the antecedent factors of digital financial disclosure language adoption and its impact on decreasing financial information asymmetry and increasing its quality.

Design/methodology/approach

The data was obtained from 116 financial managers, who are working and responsible for preparing and filing financial statements reports in listed Jordanian firms in the Amman Stock Exchange. The partial least squares structural equation modeling approach is used for data analysis.

Findings

The empirical results revealed that the adoption of digital financial reporting is positively influenced by perceived usefulness and perceived ease of use. Besides, the outcomes also confirm that the adoption of digital financial reporting positively influences accounting information quality, and hence hypotheses H1, H2 and H3 were accepted.

Originality/value

This study varies from previous studies because it is considered among the first empirical studies that determine the antecedent factors of digital financial reporting adoption and its impact on improving accounting information quality and sustainability in an empirical setting from a developing country perspective such as Jordan.

Citation

Al-Okaily, M. (2024), "The influence of digital disclosure language adoption on decrease financial information asymmetry and increase its quality", Information Discovery and Delivery, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/IDD-03-2024-0045